Article at a glance:

Managing credit card risk

Strong competition and rising delinquency rates are just two of many problems forcing credit card issuers to raise their game in risk management. Most of them have responded by using at least one of the prevalent approaches to it in hopes of raising their profitability.

The take-away

Banks and other credit card issuers can increase their profits by focusing less on minimizing risk and more on choosing their customers carefully and working collections smarter, not harder.